Nice monthly rental and city approved STR

[Jennifer Casey Kime]

Investment Info:

Single-family residence buy & hold investment in Springfield.

Purchase price: $145,000
Cash invested: $50,000

Contributors:
Nick Kime

This is about the Exact same story as our first investment property purchased in 2020. After remodeling we rented on a monthly basis. We recently paused renting for about 3 month to complete the Springfield Short Term Rental approval process. We plan to continue focusing on monthly rentals but now have the option to rental out short term. I expect the cashflow to be level out closer to $800.

What made you interested in investing in this type of deal?

After the success of the first investment property we wanted to repeat. This house is actually across the street from our first property. The location is great because it is close to both major hospitals in Springfield. This really helps with renting to travel nurses.

How did you find this deal and how did you negotiate it?

The process went smoother this time but we were still using a real estate agent.

How did you finance this deal?

We took on investors for this property. The investors put up the downpayment and furnishing costs. We brought the mortgage.

How did you add value to the deal?

As the same stuff as before. We did a lot of updating. We pulled out old nasty carpet and padding. We installed new laminate flooring and painted everything. Had to install and second sump pump under the house. Doors had to be refitted a little. Electrical outlets and switches were all replaced. A mini-split was installed for the upstairs bedroom.

What was the outcome?

The house came out really nice. It was quickly rented to travel nurses.

Lessons learned? Challenges?

This house needed a little foundation repair. That took extra time and out of pocket expenses. Overall the house is now cashflowing. I will look closer at foundation issues next time but hard also balance that with positive cashflow.